Marketing 3650 Ch. 6 Practice Test
In a firm's buying center, the deciders for products purchased on straight rebuy bases generally are upper-level managers.
False, the decision in this situation is on purchasing agents
For routine purchases, such as purchases of office supplies and cleaning supplies, lists of approved buyers may exist based on prior experience with these sellers. Government agencies may directly purchase from firms on these lists without soliciting additional bids. However, the size of the is generally limited to under __________ for the federal government.
2500
Which of the following characteristic the modified rebuy in organizational purchasing?
A limited number of alternative products and/or vendors will be considered The decision is generally triggered by a change in some environmental event "Out suppliers" may try to trigger the modified rebuy by attempting to get buyers to consider the merits of its offering over the merits of products currently used Can evolve from purchases that previously were new task or straight rebuy
Invitations to bid are used by the federal government for the purchase of complex products that must be custom designed for specialized government applications. These products often require extensive research, development, and custom tailoring to satisfy government needs.
False, a negotiated contract would be used
Consumer demand for personal computers or smart devices ultimately determines the demand for the parts and materials involved in the manufacture of each product. This is an example of ________ .
Derrived Demand
Which of the following is not considered a type of organizational market?
Employees of non-profit organizations who buy products for personal consumption
Governmental agencies normally use requests for quotes to solicit qualified suppliers to submit bids for needed products and services. The request typically contains all purchasing requirements, specifications, and deadlines that must be satisfied.
False Requests for proposals are used for a bid submittal.
The US Navy when it buys new ships or other weapons systems will most likely employ the systems contracting form of governmental buying.
False systems contracting would not include ships and weapons systems. Negotiated bidding will be used.
The Central Intelligence Agency wishes to improve the security of its global communications in light of the recent extensive hacking of supposedly secure systems. There are only a few firms that are qualified to build such systems. The CIA probably will employ an invitation to bid form of government buying.
False, An invitation to bid is not used in this situation. The negotiated contract will be used.
Bill works at Peterbuilt on the assembly line producing truck frames. Bill is exceptionally knowledgeable about the equipment needed to do his job and often makes recommendations to management on the specifications for and alternative suppliers of needed equipment. Given Bill's position on the assembly line as an operator, he probably functions in the buying center at Peterbuilt as a decider.
False, Bill is a user
The demand for goods and services produced by an entire industry tends to be price sensitive; while the demand for goods and services produced by individual firms within that same industry tends to more price insensitive.
False, Just the opposite. Demand at the industry level is price inelastic, demand at the individual firm level is price elastic.
Value analysis is most likely to occur at the need recognition stage in the organizational decision process for products.alue analysis is most likely to occur at the need recognition stage in the organizational decision process for products.
False, Value Analysis would occur at the analyzing proposals stage
Products purchased for use in business operations, or for resale to other organizations, or as a part employed in the production of another product are referred to as business products.
False, these are organizational products
Organizations such as churches, universities, hospitals, charities, and political parties are generally classified in the other producer market.
False, they are in the non-business market
Market elasticity measures how much the demand for a product changes (up or down) as the price for that product increases or decreases.
False, this is price elasticity
The role in the buying center that tends to control the flow of information between personnel in the buying center is performing the role of influencer.
False, this is the gatekeeper role
During the Identify Specifications stage of the organizational decision process products and their component parts may be critically evaluated by both the firm and its suppliers with respect to function and design in order to improve quality and, at the same time, lower production and parts/ material costs. This process is known as cost engineering.
False. This process is Value Analysis
Which of the following should be done by marketers wishing to become suppliers of goods and services to organizational buyers?
Getting listed in trade directories that serve the buyer's industry Employing aggressive promotion in media targeted to buyers in the industry to ensure their presence is made known Employing aggressive B2B sales programs that complement other promotion initiatives Promoting positive word-of-mouth, which is best generated by keeping existing customers satisfied
During the ___________ for a straight rebuy decision for office or janitorial supplies, all that may be required is identification of quantities needed. Which stage of the purchasing decision process is implied?
Identifications of Specifications
Bill works at Peterbuilt on the assembly line producing truck frames. Bill is exceptionally knowledgeable about the equipment needed to do his job and often makes recommendations to management on the specifications for and alternative suppliers of needed equipment. Given Bill's position on the assembly line as an operator, he probably functions in the buying center at Peterbuilt as a(n):
Influencer
Supervisory personnel, research and design specialists, and engineers who assist in determining specifications and defining other criteria for use during the purchase decision-making process usually perform which role in the buying center?
Influencer
In some cases, governmental agencies may use mailing lists of firms that have previously contacted governmental buying offices and indicated their desire to be included in future solicitations. Based on these mailing lists, ______________ are sent directly to interested firms.
Invitations to bid
Which of the following is least relevant to marketers wishing to become suppliers of goods and services to organizational buyers?
Maintaining a strong presence on social media, such as Facebook.
In which type of market do firms purchase a wide range of parts, raw materials and, often, services that are used to produce new products
Manufacturer Market
A manufacturer has upgraded its assembly line to one that uses automated, robotic. The decision was time consuming and complex. However, given the valuable experience decision makers compiled from this decision, future decisions to upgrade the line should not be so extensive. These future decisions probably will fall into which buy class?
Modified Rebuy Decision
Decisions in organizations for complex, high-risk, first-time purchases of major equipment and production installations fall into which buy class?
New Task
When BP buys drilling equipment and ships for the exploration, extraction, and shipment of oil it is in which type of organizational market?
Other Producer
Lumber companies, such as Weyerhaeuser, that buy trucks, bulldozers, and other equipment for forest harvesting and milling are engaged in the production of lumber products that will be sold commercially. Such companies are categorized as _______________ .
Other producers or business users
Governmental agencies normally use ___________to solicit qualified suppliers to submit bids for needed products and services. The request typically contains all purchasing requirements, specifications, and deadlines that must be satisfied.
Request for proposals
Decisions for products used by organizations usually made by purchasing agents and for which the purchase order may simply be placed with existing vendors that usually supplies these products is the:
Straight rebuy
Which of the following would not be considered as an example of an organizational market?
The CEO of Home Depot buys appliances for his personal residence
Acquiring information about alternative vendors and products during the organizational decision process is probably most difficult for new task decisions.
True
Decisions likely to be delegated to a buying committee are characteristic of the purchasing decisions classified as new task.
True
In manufacturer markets firms purchase a wide range of parts, raw materials and, often, services that are used to produce new products,
True
Melissa is an engineer with Peterbuilt and regularly participates with others to determine specifications for parts and materials that will be used in Peterbuilt's production processes. Melissa' role in the buying center at Peterbuilt is that of an influencer.
True
Supply chains are comprised of linked organizations through which products are sourced, manufactured or assembled, and finally, transported, inventoried, delivered and ultimately sold to end-use consumers.
True
The stage of the organizational decision process in which proposals are compared against one another and against the specifications is the analyzing proposals stage.
True
With respect to the buying center in a firm, personnel who actually operate equipment that may be purchased probably perform the user and influencer roles in the buying center.
True
What publication produced by the federal government is used to provide information to prospective suppliers on potential upcoming contracts for which they can bid?
commerce business daily
Products purchased by individuals for their own personal or household use are called:
consumer products
Assume the US Navy contracts with a single weapons system manufacturer for a new complex carrier defense system and that manufacturer subcontracts production of some components of the system to other manufacturers. Manufacturers that provide these contracting services to the Navy are said to be engaged in solutions selling.
false, this describes systems selling
In some cases, governmental agencies may use mailing lists of firms that have previously contacted governmental buying offices and indicated their desire to be included in future solicitations. Based on these mailing lists, requests for proposals are sent directly to interested firms.
false an invitation to bid would be used
A supplier is most likely to deliver a formal presentation to the organization during the analyzing proposals stage of the organization decision process for products.
false, A formal presentation would be delivered during the soliciting proposals stage.
When BP buys drilling equipment and ships for the exploration, extraction, and shipment of oil it is in the government market.
false, This is not a government market. This is the "other producers" market.
A furniture manufacturer may choose to buy wood and other materials from a producer who, in turn, agrees to furnish its office with furniture produced by the manufacturer. This situation is an example of supply chain negotiation.
false, This is not an example of supply chain negotiation. It illustrates "reciprocity."
Decider is not a role performed in a firm's buying center?
false, decider is a role in the firm's buying center
A farmer purchasing a tractor for use on his or her farm would not be considered as an example of an organizational market.
false, it would be considered an organizational market
James is a purchasing agent for Peterbuilt and has responsibility for purchasing and stocking MRO employed to maintain Peterbuilt's office facilities. James normally automatically reorders from the same vendors when supplies run low. This is an example of a vendor acquisition decision.Type: True or False
false, straight rebuy fits this example
Lumber companies, such as Weyerhaeuser, that buy trucks, bulldozers, and other equipment for forest harvesting and milling are engaged in the production of lumber products that will be sold commercially. Such companies are categorized as manufacturers.
false, these companies are called "other producers"
UNT typically procures its entire supply of Maintenance, Repair, and Operating (MRO) items from a single supplier, requiring that the supplier track inventory and automatically restock items as required. UNT has engaged in MRO contracting.
false, this is systems contracting
The US Navy when it buys new ships or other weapons systems will most likely employ which form of governmental buying?
negotiated contracting
The Central Intelligence Agency wishes to improve the security of its global communications in light of the recent extensive hacking of supposedly secure systems. There are only a few firms that are qualified to build such systems. The CIA probably will employ which form of government buying?
negotiated contracts
____________ are used by the federal government for the purchase of complex products that must be custom designed for specialized government applications. These products often require extensive research, development, and custom tailoring to satisfy government needs.
negotiated contracts
When products are purchased that will be used to operate an organization or will be made into products the product is called a(an) ______________ .
organizational product
Products purchased for use in business operations, or for resale to other organizations, or as a part employed in the production or another product are referred to as:
organizational products
Which of the following is not a role performed in a firm's buying center?
purchasing agent
The Department of the Navy in its efforts to better equip its SEAL teams to fight the global war on terrorism want to design a silent, maneuverable, defensible underwater delivery system. There are only a few firms that are qualified to build such systems. The Navy will probably employ negotiated contracting for the purchase and will initiate the process using:
requests for quote
Wholesaling middlemen and retailers are considered to be part of the _____________ organizational market.
reseller
__________ normally do not transform products in any way. Usually, products are sold to the next supply chain member without much if any modification.
resellers
___________ are comprised of linked organizations through which products are sourced, manufactured or assembled, and finally, transported, inventoried, delivered and ultimately sold to end-use consumers.
supply chains
Organizational buyers benefit from __________ because it substantially reduces the cost of maintaining inventory of MRO items, reduces the time spent on supplier selection decisions, and offers price protection over the term of the contract.
systems contracting
Organizational buyers often seek to purchase "total solutions" to their procurement problems by contracting with a single vendor who, may in turn, subcontract aspects of the contract to other vendors. Vendors who provide such services are said to be engaged in:
systems selling
Which of the following is least likely true of straight rebuy decisions in organizations?
top management directs the decision process
Decisions for products used by organizations usually made by purchasing agents and for which the purchase order may simply be placed with existing vendors that usually supplies these products is the straight rebuy.
true
Derived demand means that the demand for organizational goods and services is ultimately a function of the demand for consumer goods and services.
true
During the identification of specifications stage for a straight rebuy decision for office or janitorial supplies, all that may be required is identification of quantities needed.
true
Dynamic rebuy is not among the types of buying decisions made within organizations.
true
For routine purchases, such as purchases of office supplies and cleaning supplies, lists of approved buyers may exist based on prior experience with these sellers. Government agencies may directly purchase from firms on these lists without soliciting additional bids. However, the size of this is generally limited to under $2,500 for the federal government.
true
Out suppliers" attempting to trigger a purchase decision by attempting to get buyers to consider the merits of its offering over the merits of products currently used is characteristic of the modified rebuy in organizational purchasing.
true
The Department of the Navy in its efforts to better equip its SEAL teams to fight the global war on terrorism wants to design a silent, maneuverable, defensible underwater delivery system. There are only a few firms that are qualified to build such systems. The Navy will probably employ negotiated contracting for the purchase.
true
When the US Navy contracts with a single weapons system manufacture for a new complex carrier defense system and that manufacturer subcontracts production of some components of the system to other manufacturers, the Navy is engaging in system buying.
true
Wholesaling middlemen and retailers are considered to be part of the reseller organizational market.
true
With the searching for and qualifying vendors stage of the organizational decision process, vendors are often selected from pre-approved vendor lists. This probably most often encountered with straight rebuy decisions.
true
he Commerce Business Daily produced by the federal government is used to provide information to prospective suppliers on potential upcoming contracts for which they can bid.
true
he role in the buying center that typically arranges the specific details of the purchase, potentially negotiating specific terms of the contract, processes the paper work, monitors progress on delivery, and engage in any expediting that may be required is a buyer.
true
